whether Section 112A and Section 112 are optional

[abhishek Mittal]

In case of sale of listed securities when STT is paid on acquisition and transfer(sale) whether its optional for assessee to choose section 112 (having indexation benefit) or section 112A(without indexation) for taxation. section 112A start with 'notwithstanding anything contained in section 112' hence in my view it override the section 112 hence incase of listed securities when STT is paid its mandatorily fall in section 112A and assessee cannot choose section 112 (indexation benefit). Please provide your opinions.

AI Summary

Taxpayers must use Section 112A for listed securities taxation when STT is paid, overriding Section 112 choice. A forum participant questioned whether taxpayers can choose between Section 112, which offers indexation benefits, and Section 112A, which does not, for the taxation of listed securities when Securities Transaction Tax (STT) is paid on acquisition and sale. The participant argued that Section 112A, beginning with 'notwithstanding anything contained in section 112,' overrides Section 112, making it mandatory for such securities to be taxed under Section 112A. A respondent agreed with this interpretation, confirming that taxpayers cannot opt for Section 112 in these circumstances.